WASHINGTON — The Federal Reserve may expand the field of credit ratings agencies that determine the eligibility of securities pledged for loans in a government program aimed at sparking more consumer and business lending.
The Fed on Monday proposed allowing agencies that have registered with the Securities and Exchange Commission and that have experience with the securities being rated.
Doing so “would likely result in an expansion” of ratings agencies — beyond Standard & Poor’s, Moody’s Investors Service and Fitch Ratings — to participate in the Term-Asset-Backed Securities Loan Facility, the Fed said. The proposal aims to promote competition among credit ratings agencies.
The agencies have been blamed for contributing to the worst financial crisis since the 1930s. Critics contend that the agencies didn’t accurately assess risk on the sophisticated mortgage-backed securities at the heart of the crisis. Those investments soured, wracking up huge losses at banks and other financial institutions. The fallout hurt the U.S. financial system and the economy.
Under the TALF program, investors secure loans from the Fed. They use the money to buy securities backed by, among other things, auto and student loans, credit cards, business equipment and loans guaranteed by the Small Business Administration. Securities backed by commercial real-estate loans were recently added to the program.
The TALF, which started in March, is intended to spur more lending to consumers and businesses at cheaper rates. But many are still having trouble getting loans. The government said the program has the potential to generate up to $1 trillion in lending for households and businesses. Under the first phase of the program, $200 billion was available, but only a fraction of that has been requested.
The public and industry groups will have an opportunity to weigh in on the Fed proposal, which could be revised before a final version is adopted.
Relatedly, the Fed also said starting in November it will add another layer of risk assessment of all proposed collateral pledged to the TALF. The Fed said this change will “enhance” its ability to ensure that the collateral complies with Fed provisions for credit quality and transparency.
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Fed seeks ratings competition for lending program
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Utility companies: Check ID, don’t provide personal information
As a utility scam with a different approach circulates around the country, consumers should be careful and alert.
This issue was initially brought to the attention of the Public Service Commission of West Virginia by Mountaineer Gas Co., which had received a notice that the American Gas Association was sending to some of its partners. -
The Cave specializes in vintage material
The Cave is “a collaboration of coolness,” said manager John Wyrick.
Freedom Worship Center opened The Cave, which stands for collectibles, antiques, vintage, etc., on Jan. 11 at the Middletown Mall in White Hall. -
‘Timely investment’
Thanks to funding from INNOVA Commercialization Group of Fairmont, Protea Biosciences Group Inc. of Morgantown is meeting the needs of pharmaceutical companies in an improved way.
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G&S Wireless has new home at Tygart Commons
G&S Wireless is excited to be better able to serve customers at its new home in White Hall.
The store, a U.S. Cellular authorized agent, recently moved into the newly constructed Tygart Commons shopping plaza between Walmart and Tygart Valley Cinemas, after being located in the Middletown Mall for about 16 years. -
TechConnect to host biometrics forum on June 20
An upcoming forum will bring people together in a spirit of collaboration to determine how to move the state’s biometrics industry forward.
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Mentus goes full-time with taxidermy business
John Mentus has gone full-time with his taxidermy business, called JGM Taxidermy.
About two weeks ago, the Fairmont native opened his shop at 1620 Locust Ave., which is past the Exxon gas station and across from WomanCare. -
West Virginia’s unemployment rate continues to gradually improve
West Virginia’s unemployment rate continues to gradually improve along with the economy.
The Labor Market Information unit of WorkForce West Virginia’s Research, Information and Analysis Division recently published labor force estimates for the state for March 2012. -
Horn Hounds offers deer minerals, attractant
Horn Hounds LLC is Jim Gaines’ dream and passion.
In November, Gaines obtained his business license for his company, which makes deer minerals and attractant, and in January or February the operations kicked off. He runs Horn Hounds out of an office in his home in Metz. -
‘100 percent real world’
The West Virginia Statewide Collegiate Business Plan Competition is “100 percent real world.”
Meg Grzeskiewicz, a senior in West Virginia University’s Davis College of Agriculture, Natural Resources and Design, was recently awarded $10,000 for winning in the Lifestyle and Innovation category of the 2011-12 competition. -
The Colon Spa: Treatment without drugs
The Colon Spa is helping clients get their digestive systems on track.
In the middle of March, owner Alexandra Main opened The Colon Spa in Fairmont at 1827 Locust Ave., next to Westchester Village in a little white building off the side of the parking lot. - More Business Headlines
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Utility companies: Check ID, don’t provide personal information
